Options traders piled into bullish bets on the Russell 2000 on Tuesday, after the October consumer-price-index report sent the battered small-cap index surging to its best day in more than a year. A team of options strategists at Goldman Sachs Group said that 1.44 million call options tied to an exchange-traded fund tracking the Russell 2000
RUT
changed hands as small caps rocketed higher and traders chased gains.
Many are betting that the index could continue to chug higher as traders anticipate that the Federal Reserve could start cutting interest rates as soon as March, according to Gene Goldman, chief investment officer at Cetera Investment Management. This spurt of demand marked the highest daily turnover in small-cap call options ever recorded, according to data compiled by Goldman.
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